Malaysia Case Law: Decisions & Judgments

Topic

Lifting/piercing corporate veil

Legal area

Court

16 Jan 2025

1. ) CHOONG YOON CHOI 2. ) FRANCIS CHOONG WEN CHUNG 1. ) 88 RESTORAN GUO TAI SDN BHD 2. ) CHONG LEONG SHEN 3. ) YU TUA WEE 4. ) YU SZE HOU

Citation

JA-22NCvC-88-07/2023 (Mahkamah Tinggi)
Court

High Court
Case number

JA-22NCvC-88-07/2023 (Mahkamah Tinggi)

Evidence established that D2, D3 and D4, as controlling minds of D1, engaged in conduct intended to evade obligations owed to the plaintiffs (sale at undervalue, false representations in sale agreement, failure to disclose pending demand), amounting to equitable fraud and justifying lifting/piercing of D1's corporate veil; therefore D2, D3 and D4 are jointly and severally liable for D1's judgment debt of RM139,756.00 with interest and costs.
24 Dec 2024

PRO-ARC BUILDERS SDN. BHD. 1. ) TIM SEKATA SDN BHD 2. ) NASIR BIN MACHINGAL MAMATH 3. ) JASLAN BIN GALIM

Citation

BD-A54-7-07/2024 (Mahkamah Sesyen)
Court

Sessions Court
Case number

BD-A54-7-07/2024 (Mahkamah Sesyen)

The court found on the facts that the 1st Defendant acknowledged liability via the 16.03.2023 akujuanji; the cheques and payments (including payments by Maskimi Venture) show a scheme by which the 2nd and 3rd Defendants, as controllers, knowingly used the 1st Defendant as a vehicle to frustrate Plaintiff's claims against Bina Puri. That conduct amounted to fraud/fraudulent trading within s540 Companies Act 2016 and justified lifting the corporate veil to hold the directors personally liable; accordingly the Plaintiff's application to lift the veil is allowed.
26 Jun 2024

1. ) MARILYN BU SEONG 2. ) MORNA BINTI BU SEONG 3. ) YAP WAI LEONG 4. ) NGION LEE NA 5. ) LIM MING ZHI 6. ) SOH AN NEE 7. ) TAN JU WINN 8. ) JAU POOL LING 9. ) WONG VUI CHYANG 10. ) LEE HUI KEING 11. ) FABIAN WONG PU CHIANG 12. ) FERRIS WON

Citation

WA-22NCvC-367-07/2023 (Mahkamah Tinggi)
Court

High Court
Case number

WA-22NCvC-367-07/2023 (Mahkamah Tinggi)

The claim against the 2nd Defendant was struck out because plaintiffs failed to plead or adduce facts establishing the necessary elements (fraud, concealment or evasion) to justify lifting or piercing the corporate veil; there was no contractual relationship or payments to the 2nd Defendant and mere holding company status and advertising assistance are insufficient to make the holding company liable.
29 Feb 2024

SRI MAJU SARATA EKSPRES SDN BHD SEGAR A/L MUNUSAMY & 35 ORANG YANG LAIN

Citation

AA-16-16-09/2023 (Mahkamah Tinggi)
Court

High Court
Case number

AA-16-16-09/2023 (Mahkamah Tinggi)

The appeal is dismissed: evidence established that Sri Maju and related companies operated as a single integrated enterprise making Sri Maju the employer; respondents were contractually entitled to their basic salary (RM1200) during the MCO and the RM600 paid under SOCSO PSU did not discharge the employer's obligation; consent letters were not voluntary or informed and cannot justify the deductions; part‑time work or withdrawal does not defeat entitlement, therefore the ICJ award is upheld.
15 Oct 2021

Kainan Sdn Bhd Ocean Packaging & 1 Lagi

Citation

WA-12ANCC-85-06/2021 (Mahkamah Tinggi)
Court

High Court
Case number

WA-12ANCC-85-06/2021 (Mahkamah Tinggi)

The Statement of Claim prima facie discloses a reasonable cause of action against the 2nd Defendant for misrepresentation and guarantee and raises triable issues including an admission by electronic message; the Sessions Court erred in cumulatively relying on O 18 r 19(1)(a) together with affidavit evidence and in striking out the SOC where the claim was not plainly unsustainable; the appeal is allowed and the striking out order set aside so the matters proceed to full trial.

Malaysia Case Law

1. ) CHOONG YOON CHOI 2. ) FRANCIS CHOONG WEN CHUNG 1. ) 88 RESTORAN GUO TAI SDN BHD 2. ) CHONG LEONG SHEN 3. ) YU TUA WEE 4. ) YU SZE HOU

PRO-ARC BUILDERS SDN. BHD. 1. ) TIM SEKATA SDN BHD 2. ) NASIR BIN MACHINGAL MAMATH 3. ) JASLAN BIN GALIM

1. ) MARILYN BU SEONG 2. ) MORNA BINTI BU SEONG 3. ) YAP WAI LEONG 4. ) NGION LEE NA 5. ) LIM MING ZHI 6. ) SOH AN NEE 7. ) TAN JU WINN 8. ) JAU POOL LING 9. ) WONG VUI CHYANG 10. ) LEE HUI KEING 11. ) FABIAN WONG PU CHIANG 12. ) FERRIS WON

SRI MAJU SARATA EKSPRES SDN BHD SEGAR A/L MUNUSAMY & 35 ORANG YANG LAIN

Kainan Sdn Bhd Ocean Packaging & 1 Lagi